Decomposing objectives and functions in power system operation and control

The introduction of many new energy solutions requires the adaptation of classical operation paradigms in power systems. In the standard operation paradigms, a power system is seen as some equivalent of a synchronous generator, a power line and an uncontrollable load. This paradigm is being questioned by a diverse mix of challenges posed by renewable energy sources, demand response technologies and smart grid concepts, affecting all areas of power system operation. Both, new control modes and changes in market design are required eventually. A proper redesign should starts with a coherent approach to modeling. This paper presents a mean-ends perspective to the analysis of the control structures and operation paradigms in present power systems. In a top-down approach, traditional frequency-and area-control mechanisms are formalized. It is demonstrated that future power system operation paradigms with different generation control modes and controllable demand can be modeled in a coherent way. Finally, the discussion is opened up toward a formalization of service-exchange between market participants.